snam.it

2015 Interim ReviewMilan, July 29th , 2015

2

Outline

Highlights and operational performance

1H 2015 Consolidated Results

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Highlights and operational performance

Carlo MalacarneChief Executive Officer

• Revenues 1,837 Up 3.1%

• Ebitda 1,434 Up 0.4%

• Net profit 612 Up 9.1%

[ € mn ]

Solid Results

Sound Growth & Cash Flow generation

• Capex 487

• Free Cash Flow 587

• Net debt 13,936

1H 2015 Highlights

[ € mn ]

4

18.4 18.0

8.4 8.3

8.3 9.1

0.9 0.9

1H 2014 1H2015

15.317.2

8.48.3

8.39.1

0.90.9

1H 2014 1H 2015

5

Residential& commercial

Industrial(*)

Thermoelectric

Other Sectors

Gas consumption

+0.8%36.336.0

Gas injected into the network

(*) Includes: NGV, Agriculture and Non-Energy Use

Source: National Transport Network Balance

Italian Gas Market in 1H 2015

Weather adjusted

+7.9%35.5

32.9

1H 2014 1H2015

---32.832.8

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1H 2015 Consolidated ResultsAntonio PacciorettiChief Financial Officer

Income Statement

7

[ € mn ] 1H 2014 1H 2015 Change

Revenues 1,782 1,837 +55

Operating expenses - 354 - 403 - 49

EBITDA 1,428 1,434 +6

Depreciation & amortisation - 384 - 422 - 38

EBIT 1,044 1,012 - 32

Net interest income (expenses) - 204 - 186 +18

Net income from associates 49 69 +20

EBT 889 895 +6

Income taxes - 328 - 283 +45

NET PROFIT 561 612 +51

Revenues

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[ € mn ] 1H 2014 1H 2015 Change

Regulated revenues 1,748 1,796 +48

Transport 939 947 +8

Distribution 489 528 +39

Storage 243 236 -7

LNG 10 11 +1

Pass-through revenues 67 74 +7

Other revenues 34 41 +7

TOTAL REVENUES 1,782 1,837 +55

Operating Expenses

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[ € mn ] 1H 2014 1H 2015 Change

Regulated activities 341 367 +26

Controllable fixed costs 225 248 +23

Variable costs 7 11 +4

Other costs 42 34 -8

Pass-through costs 67 74 +7

Non regulated activities 13 36 +23

TOTAL COSTS 354 403 +49

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EBIT Analysis

[ € mn ]

‐32 € mn

‐3.1%

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Net Profit Analysis

+51 € mn

+9.1%[ € mn ]

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Main Financial Actions and Results

Existing debt as at 30 June 2015 (€ bln) Bond Maturity Profile (€ bln) as at 30 June 2015Main actions

Bond issuances

• 8.2y fixed rate bond: 250 €mn

Institutional lenders financing:

• New EIB financing for 200 €mn

• Cancellation of relatively expensive EIB

financing for 300 €mn

Repricing and renegotiation of 3.2 €bln

M/L Term committed credit lines (3y and

5y)

Treasury management optimization

Fitch rating assignment (BBB+)

Pool banking facilities

Bilateral banking facilities

Debt capital market

Institutional lenders financing

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

€ bln € bln

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Cash Flow from Operation and Net Investments

Net profit Change inworkingcapital

612

Depreciation& otheritems

414

1,146

Cash flowfrom

operation

Netcapex

Net Financial Investments

-583

24

-559

Net Investments

[ € mn ]

FREE CASH FLOW 1H 2015+ 587 € mn

Cash flow from operation

[ € mn ]

Net investments

120

Balance Sheet

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[ € mn ] Dec, 31 2014

Jun, 30 2015 Change

Net invested capital 20,824 20,889 +65

Fixed capital 21,813 21,970 +157

Tangible fixed assets 15,335 15,520 +185

Intangible fixed assets 5,076 5,180 +104

Equity-accounted and other investments 1,402 1,270 -132

Net working capital -864 -958 -94

Receivables 2,190 1,900 -290

Liabilities -3,054 -2,858 +196

Provisions for employee benefits -141 -139 +2

Assets held for sale and directly related liabilities 16 16 -

Net financial debt 13,652 13,936 +284

Shareholders' equity 7,172 6,953 -219

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Q & A S e s s i o n

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A n n e x e s

Operational Data

1H 2014 1H 2015 ∆ %

Transport Gas injected into the network (bcm) 32.8 32.8 - -

Gas pipeline network (km in operation) 32,303 32,354 +0.2

Storage Storage capacity (bcm)•Modulation (*)

•Strategic

15.911.44.5

15.911.44.5

- -- -- -

Gas moved through storage system (bcm)•Injection•Withdrawal

9.514.754.76

11.964.767.20

+25.8+0.2

+51.3

Distribution Gas distributed (bcm) 3.52 4.43 +25.8

Active Gas Metering at redelivery points (# million) 5.91 6.52 +10.3

17(*) Available capacity.

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Snam’s Chief Financial Officer, Antonio Paccioretti, in his position as manager responsible for the preparation of financial reports, certifiespursuant to paragraph 2, article 154-bis of the Legislative Decree n. 58/1998, that data and information disclosures herewith set forthcorrespond to the company’s evidence and accounting books and entries.

This presentation contains forward-looking statements regarding future events and the future results of Snam that are based on currentexpectations, estimates, forecasts, and projections about the industries in which Snam perates and the beliefs and assumptions of themanagement of Snam.In particular, among other statements, certain statements with regard to management objectives, trends in results of operations, margins, costs,return on equity, risk management are forward-looking in nature.Words such as ‘expects’, ‘anticipates’, ‘targets’, ‘goals’, ‘projects’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’, ‘estimates’, variations of such words, andsimilar expressions are intended to identify such forward-looking statements.These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predictbecause they relate to events and depend on circumstances that will occur in the future.Therefore, Snam’s actual results may differ materially and adversely from those expressed or implied in any forward-looking statements.Factors that might cause or contribute to such differences include, but are not limited to, economic conditions globally, political, economic andregulatory developments in Italy and internationally.Any forward-looking statements made by or on behalf of Snam speak only as of the date they are made. Snam does not undertake to updateforward-looking statements to reflect any changes in Snam’s expectations with regard thereto or any changes in events, conditions orcircumstances on which any such statement is based.The reader should, however, consult any further disclosures Snam may make in documents it files with the Italian Securities and ExchangeCommission and with the Italian Stock Exchange.

Disclaimer

snam.it

2015 Interim ReviewMilan, July 29th , 2015